An expander tool includes segments capable of deflecting inward in response to a restriction encountered while expanding a tubular downhole. The expander tool includes an inner mandrel having a tapered surface about its outside diameter, the segments disposed around the inner mandrel with corresponding tapered surfaces in contact with the tapered surface of the inner mandrel and a compression sleeve disposed around the inner mandrel. A compressive load on the compression sleeve applies a preload force biasing the segments to a raised position on the tapered surface and hence an extended position. This preload enables expansion of the tubular with the segments in the extended position. Upon reaching the restriction, an increased pull force on the expander tool forces the segments down the tapered surface of the inner mandrel against the bias of the preload to a retracted position such that the expander tool assumes a smaller maximum outer diameter.